GOP mega-donors Ken Griffin‘s fund Citadel Advisors LLC has made a major shift in the AI-linked investment universe by cutting its stake Palantir Technologies Inc. PLTR and more than tripled its share Nvidia Corp NVDAaccording to its third quarter 13F filings with the SEC.

Citadel cuts stake in Palantir

After trading on both the NYSE and Nasdaq this year, Palantir’s shares are up 298.37% year-to-date. In comparison, the NYSE Composite Index and the Nasdaq 100 Index rose 20% and 25%, respectively, over the same period.

Alex KarpThe company he leads is engaged in providing access to artificial intelligence targeting tools for government and military contracts. Knowing Palantir’s business, financial market participants are unlikely to attribute this company to a vehement meme following.

However, its CEO, the Griffin-led fund Citadel, significantly reduced its exposure to Palantir in the third quarter.

The fund increased its call positions by 91% and its puts by 55%, but significantly reduced its holdings from 5.68 million shares to 508,086 shares in the third quarter – a decline of 91% – and increased the value of the holding September 30 at $18,900.

Also read: JD Vance’s Investment Playbook Includes Bitcoin and ETFs: Here’s What Else the Vice President-Elect Is Betting on

Citadel increases stake in Nvidia

Nvidia shares have also outperformed the Nasdaq 100 index, as it is up 181% year-to-date. It was also a close race Apple Inc AAPL in terms of market capitalization. While it has previously surpassed Apple’s market cap, at the time of publishing this article, Apple was in the lead with a market cap of $3.551 trillion Jensen HuangThe company’s assets under management amounted to $3.314 trillion.

Citadel, one of the largest funds in the US, holds positions in 14,115 companies with a total investment value of $518.2 billion. The fund increased its stake in Nvidia by 194% to 7.122 million shares worth $864.96 million in the third quarter.

The AI ​​industry’s bellwether Nvidia, under Huang’s leadership, has provided optimistic forecasts for the coming quarter and fiscal year 2025. This positive outlook is underpinned by increasing production of the Blackwell chip.

Analyst opinions on Palantir and Nvidia

According to Benzinga Pro data, Palantir has a consensus price target of $30.22 apiece based on ratings from 18 analysts. The highest price target from all analysts covered by Benzinga is $75, issued by BofA Securities on November 25, while the lowest price target is $7.5, issued by Wolfe Research on August 8, 2023.

The average price target of $63.67 between BofA Securities, Wedbush and Goldman Sachs implies a downside potential of 3.83% for Palantir.

According to Benzinga Pro data, Nvidia has a consensus price target of $170.56 apiece based on ratings from 40 analysts. The highest price target of all analysts covered by Benzinga is $220 per share, issued by Rosenblatt on November 21st, while the lowest price target is $120 per share, issued by New Street Research on August 6th.

The average price target of $154.67 between DA Davidson, Phillip Securities and Truist Securities implies a 13.74% upside potential for Nvidia.

Image via Shutterstock